Thermal Energy Storage Market to Be Hampered by High Upfront Investments

Albany, NY -- (SBWIRE) -- 06/01/2015 -- According to the report, in 2013, the global thermal energy storage market stood at US$627.6 million and is anticipated to touch US$1,818.8 million by the end of 2020, exhibiting a 16.7% CAGR from 2014 to 2020. In terms of installed capacity, the global thermal energy storage was at 2,038.3 MW in 2013 and is expected to be 6,070.2 MW by the end of 2020, showcasing a 17.1% CAGR from 2014 to 2020.The rising global need for reliable, efficient, and cost-competitive electricity is propelling the growth of the global thermal energy storage market. However, grid interconnection and requirement of high upfront investment is the restraining factor for this market.

The global thermal energy storage market has been categorized according to the technology used in the system into the segments of latent heat, thermochemical heat, and sensible heat. Sensible heat technology is used widely in the current market scenario and is anticipated to lead the global thermal energy storage market between 2014 and 2020. Nevertheless, the market share of sensible heat storage technology is expected to decline due to its low storage capacity per volume of the storage medium and advancements in other technologies such as latent heat and thermochemical heat storage. The high energy density offered by the latent and thermochemical heat storage systems will help these two erode the dominant market share of sensible heat storage systems.

The global thermal energy storage market, on the basis of end-use application, has been segmented into the utilities, commercial and industrial, and residential segments. In 2013, the commercial and industrial segment led the market, owing to the increasing demand for backup power supply and rising energy prices. The market has been segmented geographically into Europe, Asia Pacific, North America, and Rest of the World. In 2013, Europe dominated the global thermal energy storage market in terms of capacity installation and is expected to further retain its position in the near future. Europe is expected to add installed capacity of around 1,307.0 MW by the end of 2020, owing to the region's strong emphasis on energy efficiency and rising demand for renewable energy generation from this region. In addition, huge investment in solar thermal energy is also driving the growth of the market in Europe.

In comparison, North America is a relatively mature market and is expected to showcase moderate to high growth from 2014 to 2020. Furthermore, Asia Pacific is anticipated to propel the demand for thermal energy storage market, owing to the rising need to work towards a sustainable and energy-efficient future. Economies in Africa and the Middle East have set determined targets for expansion of the share of renewable energy sources in the global power generation portfolio, which will fuel the thermal energy storage market in RoW in the near future.

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